Perhaps all of us have ambitions and dreams of becoming financially stable someday. We can, of course, realize our dreams through working hard and investing our money in investments that provide us good returns.
Investing is the method of committing your money or capital to a business venture with the chance of getting an additional income or profit. If you have the financial resources to invest, you can commit it to a business endeavor and get good money returns.
However, some types of investments involve financial risks. Thus it is essential that you know of the types of investment that are low-risk and provide you a good income and profit. Here is a list of those investments that you can commit your money to without worrying about great financial risks.
Money Market Funds
A money market fund is an assortment of short-term bonds, certificate of deposits, and other financial investments. If you invest your money in a money market fund, you will now have diverse financial investments with the security of getting profits of your capital.
It is not difficult to access a money market fund investment. Just go to your nearest brokerage firm and mutual fund companies, and inquire about this type of investment. The excellent thing about money market funds is that you can withdraw your money any time you want without extra charges.
Brokered Certificate of Deposit
Brokered certificate of deposit is a low-risk investment that you can access a sales representative or directly from a brokerage firm. Brokered CDs will not give you worries about high financial risks, and it is ideal for potential investors who do not want to waste their money on an investment.
Perhaps the only catch about this type of investment is that they do not promise a high return of your capital. Still, many newbie investors invest their money on a brokered certificate of deposit because it is a secure investment. You can also make your investment with other fixed investments.
This type of investment involves an annuity contract between an investor and an insurance firm. Fixed annuities are ideal for those investors who want conservative retirement savings because they are low-risk than other investments, and provide security of capital.
Fixed annuities have excellent features such as enabling you to grow your investment free of tax until your retirement.
Preferred stock is a type of hybrid money investment that has similarities with stock investments in its trading mechanics. A preferred stock investment has a dividend rate statement higher than brokered CDs.
Preferred stock typically pays monthly or quarterly, and you can transform your dividends into capital profits. This type of investment has a low liquidity risk that is just ideal for those people who are hesitant to invest their money. Without worries of penalty, you can also sell your investment any time you want.
Real Estate Investment Trusts
Real Estate Investment Trusts or REITs is an investment by way of mutual funds invested in a real estate endeavor. Typically, money in this investment is put into a venture such as apartment complexes, shopping centers, or office buildings.
REITs promise a modest return of your capital because there is a good chance that a particular city or state has a dynamic real estate market. However, before you invest your money in real estate investment trusts, it is essential that you get advice from real estate firms to help with your investment.
Investing your money is one step for you to become stable with your finances. However, you should know about the financial risks when it comes to various types of investment. There are types of investment that promise an additional income and profit of your capital with good security.
Start by knowing the various types of low-risk investments above, or you can get advice from investment experts at Ashe Morgan before you start investing your money.